The Central Bank of Nigeria (CBN) has unveiled plans to accelerate the adoption of biometric-driven and “invisible” payments as part of its Nigeria Payments System Vision (PSV) 2028, while warning that the success of the initiative will depend heavily on data privacy, identity management and consumer protection.
The strategy forms part of the Nigeria Payments System Vision 2028, a roadmap designed to create a payment ecosystem that is secure, resilient, inclusive and globally competitive.
Speaking at the launch of the framework, CBN Governor, Mr Olayemi Cardoso, emphasised the role of efficient payment systems in driving economic inclusion and poverty reduction.
“One of the fastest ways to take a large number of people out of poverty is through an efficient payments system. It’s through an efficient payment system. So let us not look at it lightly,” Cardoso said.
An analysis of the newly released vision document shows that the apex bank is targeting a future where Nigerians can authorise payments using fingerprints, facial recognition, iris scans and other biometric identifiers, reducing reliance on passwords, PINs and one-time passcodes.
The framework envisions seamless payment experiences across transport services, utility bill payments, subscriptions, retail purchases and government disbursement programmes.
According to the document, biometric-driven payments are designed to make transactions faster, simpler and more secure while ensuring users retain control over consent, privacy and associated costs.
Under the proposed model, commuters could board buses and trains using biometric verification, utility bills could be settled automatically through pre-approved arrangements, and shoppers could complete purchases without traditional checkout processes.
The document noted that biometric authentication could also be deployed at agent banking locations, Point-of-Sale terminals, micro-Automated Teller Machines and conventional ATM networks.
Such systems are expected to be particularly useful for individuals who face challenges with literacy or managing card credentials and PINs.
The CBN outlined two major models for biometric payment verification.
The first is on-device verification, where biometric information remains stored on a customer’s smartphone, payment card or wearable device and is verified locally.
The second is server-side or terminal verification, where biometric templates are matched through trusted databases or payment terminals, enabling transactions across multiple devices and locations.
However, the apex bank acknowledged that broader implementation of server-side verification would require stricter governance frameworks and enhanced security measures.
The document stated that stronger privacy controls, clear user consent, secure storage systems, data retention policies and efficient redress mechanisms would be necessary before large-scale deployment.
The payments vision also highlighted Nigeria’s existing legal obligations regarding biometric data processing.
According to the framework, biometric information is classified as sensitive personal data under Nigeria’s data protection laws, requiring organisations to obtain explicit consent, collect only necessary information, safeguard stored data and conduct Data Protection Impact Assessments before implementing high-risk processing activities.
The emphasis on privacy reflects growing concerns among consumers about the collection, storage and sharing of personal information across digital platforms.
While biometric authentication can reduce fraud linked to stolen cards and compromised passwords, the report warned that biometric breaches could have far-reaching consequences because fingerprints and facial characteristics cannot be replaced like conventional credentials.
“People worry about hidden charges and misuse of biometrics,” the document stated.
To address these concerns, the framework proposes simple enrolment processes, transparent consent mechanisms, advance notifications before recurring deductions, transaction receipts and efficient dispute resolution procedures.
The report also warned of emerging security threats specific to biometric systems.
“If anti-spoofing is weak, attackers can use fake fingerprints or face images to impersonate customers, especially at agent locations and cash-out points,” the document noted.
The CBN added that experiences from other jurisdictions demonstrate that cloned biometrics and unauthorised transactions can occur when safeguards and complaint-resolution mechanisms are inadequate.
Beyond privacy concerns, infrastructure limitations remain a significant challenge to nationwide adoption.
The report observed that while mobile network coverage has expanded across the country, many Nigerians still do not regularly access mobile internet due to affordability constraints, limited digital literacy and device limitations.
It further noted that USSD platforms continue to account for a substantial share of financial transactions among low-data users, although service disruptions and technical challenges have occasionally affected reliability.
The vision document also identified fragmented data systems and varying device capabilities as obstacles to a seamless payment experience.
Although biometric authentication already exists within parts of the banking sector, the report noted that deployment remains limited, particularly outside selected ATM locations.
To improve readiness, the CBN plans to prioritise on-device biometric authentication supported by robust consent frameworks that allow users to modify, suspend or cancel recurring payment authorisations.
The strategy also seeks stronger integration between the Bank Verification Number (BVN) and National Identification Number (NIN) databases to reduce verification failures and enhance transaction integrity.
According to the roadmap, Point-of-Sale terminals and agent banking locations are expected to serve as the first major channels for biometric payment adoption.
Over time, the technology could expand to contactless payment systems, wearable devices, facial recognition platforms and checkout-free retail environments.
The framework also recommends introducing public scorecards to measure service quality, complaint resolution timelines and consumer protection performance across payment service providers.
The CBN acknowledged that identity management challenges remain a critical issue.
While the BVN and NIN systems have strengthened Nigeria’s digital identity infrastructure, the report noted that incomplete linkages and occasional inconsistencies between databases continue to create verification challenges.
It warned that disruptions affecting identity verification platforms and telecommunications infrastructure could undermine public confidence in biometric payment systems.
To address these concerns, the roadmap proposes biometric-enabled PoS terminals and micro-ATMs equipped with liveness detection technology, enhanced agent training, standardised device certification requirements and offline transaction capabilities for low-connectivity environments.
The vision also includes plans for a national device programme involving locally assembled smartphones and payment devices preloaded with payment software, digital wallets and consent management tools.
The CBN has set ambitious implementation targets, including achieving at least 90 per cent BVN-NIN linkage in pilot corridors, maintaining identity interface availability of 99.5 per cent and ensuring authentication success rates exceed 98 per cent.
Under the long-term strategy, biometric-enabled PoS terminals are expected to become widespread, while ATMs, wearable devices and invisible payment channels complement the broader ecosystem.
Despite the promise of improved convenience, financial inclusion and payment efficiency, analysts maintain that public trust will ultimately determine the success of biometric payments in Nigeria.
They argue that beyond technological innovation, regulators, financial institutions and payment service providers must demonstrate their ability to protect consumers’ most sensitive personal data.
As Nigeria advances towards a future where transactions could be completed with a fingerprint or facial scan, the challenge may not be whether the technology works, but whether citizens are willing to trust the systems that power it.
The PSV 2028 marks the next phase of Nigeria’s digital payments evolution, building on earlier innovations such as instant payments, direct debits, USSD banking and the BVN framework. However, unlike previous payment innovations, biometric transactions require the handling of highly sensitive personal information, making privacy, transparency and consumer protection central to their long-term success.
